EUR/USD flirts with multi-week lows, US data eyed

Dhwani Mehta FXStreet

EUR/USD’s tepid-recovery ran into offers at daily pivot in early Europe, knocking-off the rate to a fresh five-week low of 1.0547.

EUR/USD awaits US data, Fedspeaks

Currently, the spot drops -0.20% to 1.0556, accelerating the declines from 1.0587, daily highs. The main currency pair is back on the offers and fails to benefit from a better Eurozone trade balance report, as the USD bulls remain in command and drive the greenback to fresh four week tops just shy of 101.50 versus it main competitors.

European Monetary Union Trade Balance s.a. came in at €24.5B, above forecasts (€22.5B) in December

Yellen’s hints on rates hikes this year, brought a March rate hike back on the table, pushing the treasury yields higher and in turn the US dollar.

Looking ahead, US CP figures, industrial production, TIC flows, the empire state index, retail sales and the NAHB index will fill in the US calendar today.

While speeches from Fed officials Rosengren and Harker cannot be overlooked amidst Yellen’s testimony before the House Financial Services Committee.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0602/08 (5 & 50-DMA). A break beyond the last, doors will open for a test of 1.0658 (10-DMA) and from there to 1.0676 (100-DMA). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0471 (daily S3) could be tested.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Slightly Bullish	Overbought	Shrinking
1H	Bearish	Oversold	Low
4H	Bearish	Overbought	High
1D	Strongly Bearish	Neutral	Expanding
1W	Strongly Bearish	Neutral	Shrinking
Updated Feb 14, 08:30 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.